Between a rock and a hard place....

[thekitchendesigner]

I wonder if anyone who's been in a similar situation might be able to share advice.

For several years I had a small kitchen showroom, which did ok, nothing that would set the world on fire but an income nonetheless. This year has been awful, and earlier in the year i decided for many reasons not to continue.

Also, back in 2011 I started a sideline business very different to kitchens which started to gather momentum. I took the call to pull away from kitchens (for several reasons) earlier this year and focus on the new business which was starting to go places.

However, financially the kitchen business hit me hard, and plans I had lined up to give me and my one employee an income didn't work, and to top to all off the new business has had a quiet spell, just when I was going to start pushing it and relying on it more. And it's partially seasonal, so were going into off peak season

The situation I find myself in is this:

New business needs me and one other to operate properly, due to the nature of what we do, so can't simply get rid of employee. I can't afford to pay him personally as planned (due to fall back plans failing), and the new business isn't established enough to pay him or me enough, and has had a quiet spell as well as being seasonal. What small amount of money is in that business I need to try and tick over, meaning I have nothing to play with to really push the business forwards. If I can't push the business forwards, then it's not going to go anywhere.

We have lots of new opportunities to work on with this business, but all will need a bit spending on them to properly promote and establish, something I can't do right now.

I can see investment as an option, and I'm talking to an interested party as we speak. This could really help by providing capital to work with and help towards securing me and my employee. But, it's not guaranteed he will want to invest

My biggest worry until or if I can do this, is what to do. I can't run it alone, can't afford to stay 'as is', and have 100% belief the business could be very successful with some investment so don't want to just give up on it.

I'd happily get a job to supplement my income, but very little will afford me time to also assist in building the business up alongside it. If I can't secure any investment, I can't see any other way around it.

Sorry it's a long post, but if anyone has been in a similar situation I'd be really glad to hear how you got through it. Currently, I just can't see a way out but giving up something with so much potential (and that so many comment on how great it sounds), and that I've worked so hard on, will be heart breaking

Thanks for reading!

 

[thekitchendesigner]

Just a bump to see if anyone has been in a similar situation and can share any positive thoughts?

 

[MorrisChesterfield]

Hi,

I saw you post yesterday, i had a think but only thing i can think of is wether to look round a kitchen maker/joiner and wether you could form a partnership or something.

It would be a shame to shut it down after the hard work over the years.

Good luck.

Ben

 

[businessfunding]

It is very difficult for anyone to give you cohesive advice on this without knowing what the business is and what the options are

The answer that springs to mind is to get a part time job whilst working on your current business.,
I'm struggling to see how you can justify employing 2 people in a business that isn't creating revenue - but I don't have much info to judge on.

 

[thekitchendesigner]

New business (started in 2011 as a sideline) is the hiring of performance and prestige cars.

As cars need valeting, customers need meeting, cars need delivering etc, its not something one person can do alone.

Its generating sales, and has done since i started in 2011, but only recently the decision was taken to try and make something out of it, however this was before the kitchen side had to stop, and trying to run 2 businesses wasn't working - rather than 2 businesses just ticking over, i decided it was more sensible to focus all on one and make it do very well, and then hit a quiet spell.....!

It needs more working capital to give it the boost to go places

 

[businessfunding]

Thanks for the response, which does shed a little more light - but my big question would still be - how do 2 of you usefully employ your time in the down season?

I understand that the cars can't be parked up & left but there isn't big hands-on time required.

How confidant are you that you business plan is inherently workable>? How big is the cash dip prior to recovery?

My core business is debt finance and TBH I would strongly advise against taking on debt until you have a clear path to positive cashflow

How about temporary / part time jobs?

 

[thekitchendesigner]

Indeed things are quieter during the off peak season but the business doesn't stop. The cars can be used for many things such as weddings, birthday treats, anniversaries, hotel breaks, gift vouchers (Xmas too) corporate incentives, business & corporate use.....

We just need to increase volumes in all areas. Aside from the hires themselves, between now and march is wedding fayre season, which is a good way for us to gather interest for the spring. So although it may seem like there's nothing to do in winter, there is.

However to increase volumes, we need to ramp up marketing, get the cars seen more and increase our presence, all which needs cash/investment to do so. During the year I've had some kitchen work to supplement pay, but now without this it changes. I will still be doing some consultancy work in my spare time to supplement income.

Me getting a part time job is all well, but it won't allow me the time to grow the business as required, and finding something that will fit with the way hires and deliveries work etc will be incredibly tricky.

If the business can increase volume we'll be well on the way to a clear path, but that won't happen by sitting and waiting, in my eyes. I need to be proactive. I feel like I'm on a massive bungee cord right now!!

 

[Eco Sure Power]

If i were you i would do some reasearch on The Zeitgeist Movement, and then re-evaluate your position and realise youre not the only one suffering. Unless we address the core principles of the system these kinds of stroies will only invariably get worse.

 

[thekitchendesigner]

Hmm, thanks. I'm fully aware i'm not the only one in one of many dilemma's.

 

[japancool]

Have you spoken to your bank to ask about funding?

 

[estwig]

Get yourself on people per hour to pick up some kitchen design work. Could bring a little income that fits round other things.

 

[ecigsUK]

can you cut your employees hours? hire a school leaver for less? how many cars do you have and are they yours? If they are not all tied up working could you sell one for extra capital, what do you need the extra capital for?

 

[Eco Sure Power]

Hmm, thanks. I'm fully aware i'm not the only one in one of many dilemma's.

its a shame that under the current monetary social system we dont actually have much of a choice.

When you take a step back and look at money for what it really is, why the hell do we need it? Money doesnt build schools and hospitals - resources do. If money never existed we would still have transport, food, energy, housing, as far as i can see money is actually anti economic, it is restricting humanity.

 

[SamStones]

From what you've said I think you need to find a way to make the new business work with just yourself. I know you've said this doesn't seem possible but look at it again. A business which loses money overall is no good! You're better having to turn down the odd piece of work that you can't fit in than be able to do everything that comes your way but not be able to put food on the table at the end of the week because your overheads exceed your income.